The Organisation of Petroleum Exporting Countries (OPEC) has said that five oil exporting countries, including Nigeria, Angola, Venezula, Azerbaijan, and Russia are mostly affected by falling currency value, The Nation reports.
OPEC, in a paper detailing the impacts of recession on the global oil market, said the countries were picked among several others as having shown serious effects of fall in currency value. The body said depreciation in the currency value is common in the in oil exporting countries, adding that whether it is the Venezuelanbolívar, or the Russian rouble, low oil prices are wreaking havoc in oil exporting economies and on their national currencies. According to OPEC, governments were forced to devalue their national currencies in order to stem the rapid outflow of foreign reserves.
With particular regard to Nigeria, it said that Africa’s largest economy was hard hit by the falling oil prices and that the national currency, the naira, dropped against the dollar by more than 50 per cent over the past year. On January 20, the Federal Government requested a $3.5 billion loan from the International Monetary Fund (IMF) and the African development Bank to plug its $15 billion budget gap. The country’s oil revenues are expected to fall by 70% in 2016, while the hard currency reserves almost halved from $50billion to $28billion and the state’s emergency fund went from $2 billion in 2009 to $2.3billion currently.